Required return on Stock = Risk-free return +( Market risk premium) ( Stock's beta) If a stock's expected return plots on or above the SML, then the stock's return is to compensate the investor for risk. If a stock's expected return plots below the SML, the stock's return is ] to compensate the investor for risk. Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF=4%;rM=9%;RM=5%,andbeta=1 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % % % % Required return on Stock = Risk-free return +( Market risk premium) ( Stock's beta) If a stock's expected return plots on or above the SML, then the stock's return is to compensate the investor for risk. If a stock's expected return plots below the SML, the stock's return is ] to compensate the investor for risk. Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF=4%;rM=9%;RM=5%,andbeta=1 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % % % %